Environmental, Social and Governance

Investing in Our Communities, People and Principles

At Applied Digital, we are committed to the well-being of the earth and the people around us. We recognize the importance of operating in a sustainable way so that we are contributing to all of our collective futures.

Green Computing

Applied Digital’s next-generation datacenters are optimized for green computing. We conduct our business with energy efficient and eco-friendly approaches in mind and in practice in accordance with generally accepted “green computing” standards.

  • Unlike traditional datacenters, our facilities are majority ambient air-cooled, which reduces cost and carbon footprint
  • We choose geographic locations that allow us to minimize the use of mechanical or other cooling methods
  • Our facilities vary the load and can rapidly shut down when the grid needs us to, which enables the grid to incorporate more intermittent generation (wind and solar) reliably
  • We use alternative energy sources, such as wind, whenever possible
  • As of January 2023, 36% of employees are hybrid or have some ability to work remotely, which reduces our cost and carbon footprint
  • Our high-density datacenters and servers eliminate wasteful system components while getting the most compute out of the smallest physical footprint
  • By streamlining our datacenter designs, we reduce the use of steel, concrete and other building materials
  • We are exploring ways to use the heat from our facilities for other purposes such as green houses

Environmental

Protecting the Earth Around Us

Applied Digital is committed to building infrastructure that primarily uses renewable energy and encourages the build-out of more renewables by providing a higher return on investment for sustainable projects.

Applied Digital leads the market in designing, building and operating next-generation datacenters which host High-Performance Computing (HPC) applications that include, but are not limited to, cryptocurrency mining. The Company’s datacenters are served by transmission networks that move substantial volumes of power with a focus on primarily renewable energy that is often stranded due to a lack of local demand. The facilities offer a unique approach to integration in the power grid as the necessity of balancing supply and demand within the power grid presents a valuable opportunity and area of leverage for dispatchable load services.

The Company prioritizes the environment, which is reflected in various stages of Applied Digital’s operations, including a focus on locating its datacenters near renewable energy sources. We operate our environmental efforts on a site, operations and community level.

Site Level

Alleviate Congestion

Wind developers scout the country for ideal locations to build and operate wind generation projects. These projects are built in rural areas of the country where there are vast amounts of land and wind. The renewable assets can take 18 months or more to construct; however, the transmission lines to move this energy out can take upwards of a decade to put in place. If wind energy is produced but not utilized, the generating facilities may be forced to reduce output. This is referred to as "stranded power." Applied Digital can be located near renewable power assets such as wind farms to help the power owners monetize their stranded power, providing economics to spur local growth.

Location

Applied Digital gravitates toward areas of the country where there is stranded power. North Dakota is one of the largest wind-producing states in the United States, housing more than 1,500 wind turbines throughout the state. The Company operates several projects in North Dakota because there is a surplus of stranded power. In addition to the availability of stranded power directly associated with wind farms, the Governor of North Dakota, Doug Burgum, has publicly committed to making North Dakota carbon neutral by 2030, which makes the location ideal for Applied Digital’s infrastructure.

Curtailment

Curtailment, not to be confused with a battery-like function, serves a different benefit. Applied Digital is capable of scaling services based on power production, ramping up or down our load on the grid, and meeting the needs of the operators with no material interruption to their product or end-user — helping support grid stability while reducing congestion.

Operations Level

Recycling

The commissioning of a site is labor intensive as it includes unpacking boxes and loading equipment onto racks for energizing. The foam protecting the mining equipment from damage during transport can take up a lot of space on-site and in a landfill even when recycled. Applied utilizes a foam densifier machine on-site to melt the foam packaging, reducing the bulkiness by 98%. Taking this additional step reduces transport to the dump and the impact on the environment. This material is then sold to be used as a recycled product.

Equipment

The Transformers on-site use specialized biodegradable and non-explosive fluids.

Community Level

Clean Technology

The Company’s sites use very little water. There are no large amounts of chemicals on site that would risk the surrounding population. The site does not emit exhaust into the air. There is a very low risk of chemical spills and an overall low risk of any pollution.

Carbon Footprint

The Company’s focus on renewable energy and its partnerships with local government, communities and utilities represents its commitment to reducing carbon emissions and driving the adoption of renewable power as an environmentally conscientious business leader in High-Performance Computing (HPC) digital infrastructure.

Social

Supporting the Well-Being of All Individuals

Applied seeks areas in which their digital infrastructure buildout would effect positive change and serve the community as an investment, offering opportunities for local talent and bolstering the local government’s drive toward primarily renewable power production in their jurisdiction. The facilities will infuse rural areas with higher income career opportunities, creating jobs and setting communities up as leaders in adopting, and providing a home to, the next wave of technology-focused companies.

Communities

At Applied, we value our communities and aspire to be a value-add to the local economies. Our commitment to our communities begins in parallel with our site selection process. We visit every location, meet residents and identify community needs prior to starting projects. Our team hosts local town halls to speak to local residents and educate them as well as answer any questions and address concerns. To further our commitment to the communities we are active in, we have donated over $75,000 to date to causes that are important to these local communities.

Construction

Applied hires local contractors and vendors for the construction of projects. Not only do the local construction companies benefit, but the infusion of workforce on-site provides opportunities for the local economy, such as restaurants, hotels, and other local businesses to flourish.

Local Workforce Development

Training

There is a limited talent pool for next-generation datacenter operators, therefore the Company is a large proponent of local workforce development. Applied provides on-the-job training for entry-level positions that allows us to hire people with no experience. We use a learning system that allows employees to get certified on safety, operations, technical topics and more. In doing so, we have created a robust, internally driven training program to teach individuals with varying levels of expertise to operate highly technical systems and equipment in a safe, effective and efficient manner.

With an increased focus on training and developing our people, we aim not only to support the success of our projects but also to provide a platform for employees to grow their roots within the company. We understand the value that our talented employees bring to our team and we strive to provide every individual with the necessary training, support, and opportunities for advancement that will enable a long-term career with us.

Health and Compensation

Labor is one of the highest costs across the industry and the treatment of employees can be a way for companies to differentiate. At Applied Digital, we provide competitive pay and benefits which can translate into improved performance through employee engagement and customer satisfaction. In addition, competitive wages and benefits can mitigate regulatory risks. Applied Digital creates a competitive advantage by offering good healthcare benefits and a safe work environment.

Governance

Commitment to Principled Corporate Governance

Applied Digital seeks to have strong corporate governance, including a management team highly aligned with shareholders and a diverse Board of Directors. Named Executive Officers and Directors of Applied Digital own approximately 29.5% of the Company’s common stock, while five of six directors are independent, two of six board members are female, including one as minority. Applied Digital’s workforce is diverse on the site-level and headquarters, both with minority and gender representation.

Human Rights & Fair Labor

We deeply respect and do our part to uphold and protect the fundamental human rights of those we work with. We have zero tolerance for any violation of those rights, including the use of child labor, forced labor or human trafficking. We also stand for the rights of women, minorities and indigenous groups and believe in providing a living and fair wage to all employees.

Anti-Bribery

When it comes to professional and ethical conduct, we are committed to the highest standards, with absolutely no tolerance for bribery and corruption and have a Whistleblower Policy and process. The Applied Digital anti-bribery policy, company training and procedures require complete compliance with the United States Foreign Corrupt Practices Act. Under the FCPA and similar anti-corruption laws, it is illegal for the company, its directors and employees to authorize payments to foreign officials for improper purpose.

Anti-Harassment

We strive to facilitate a professional environment that prioritizes respect and tolerance among team members. No matter the circumstance, we do not condone any form of harassment. This includes gender, race, religion, national origin, disability, sexual orientation, gender identity, military service or veteran status. In the event of a harassment encounter, employees are to report the violation to a manager, the Human Resources department or utilize the ethics hotline. It is our policy to act promptly and address the reported issue so that our employees always feel protected. View our Whistleblower Policy for more information.

Additional Governance Links

View Board of Directors View Board Committees View Governance Documents View Whistleblower Policy